Mystery suitor targets Bendon

By DANIEL RIORDAN

Lingerie maker Bendon has a new suitor, as yet unnamed.

Bendon Group shareholders had been due to vote next month on a $38.5 million bid for its operating subsidiary, Bendon. The bid was lodged in November by a consortium headed by Bendon Group managing director Hugo Venter, with the support of 26 per cent shareholder AMP Henderson.

But Bendon Group's directors said last night that they had since been approached by several parties expressing interest in the business. Those discussions had resulted in an "indicative non-binding" offer for Bendon, at price levels "similar to" the earlier offer.

The Venter/AMP consortium is currently doing due diligence. Directors said they would allow the new party also to do due diligence, and require it and any other interested parties to submit binding offers for Bendon by February 1.

Directors expect to recommend a preferred buyer to shareholders early next month. A Grant Samuel appraisal report on the Venter/AMP bid is due in the board's hands at the end of this month.

Bendon Group shareholders are now likely to meet in mid to late March to vote on any deal, which requires the support of 75 per cent of voting shareholders.

PricewaterhouseCoopers partner Steve Smith, who is advising directors on the sale process, said the identity of any new bidders would probably be disclosed if and when their offers became binding.

The Venter/AMP offer is for only the operating subsidiary, not the cash assets of the parent company listed on the NZSE.

Bendon Group has said a successful offer would return about $56 million to shareholders, including about $17.5 million cash remaining from last year's sale of another subsidiary, NZ China Clays.

Bendon shares closed yesterday at $1.78, down 5c from the $1.83 level before the management buyout offer was announced on November 30. At the $1.78 share price, Bendon Group had a market capitalisation of about $55 million.

The Venter/AMP bid has been criticised by some as being too low. The critics include Tower Asset Management, which owns 14.5 per cent of Bendon Group, and is one of eight institutional shareholders, including AMP Henderson.

Bendon's brands include Elle Macpherson Intimates, Bendon, Hickory, Hey Sister and McPherson Men.